1. Understand What Business Rates Are
Business rates are a tax charged on most non-domestic properties like shops, offices, warehouses, and factories in the UK. The rates are calculated based on the rateable value of your property, determined by the Valuation Office Agency (VOA).
2. Apply for Small Business Rate Relief (SBRR)
If your property has a rateable value of £15,000 or less, you may qualify for Small Business Rate Relief:
- 100% relief if the value is £12,000 or under
- Tapered relief for values between £12,001 and £15,000
You must apply through your local council, and only one property per business usually qualifies.
3. Challenge Your Property’s Rateable Value
If you believe your rateable value is too high, you can:
- Check your property’s details on the VOA website
- Challenge the valuation through a formal appeal
Successful appeals can significantly reduce your business rates bill.
4. Claim Empty Property Relief
If your commercial property is empty, you may get relief for a limited time:
- 3 months for most properties
- 6 months for industrial properties (e.g., warehouses)
After this period, full business rates usually resume unless further exemptions apply.
5. Check for Charitable or Non-Profit Relief
Charities and some non-profits can claim up to 80% relief on business rates. In some cases, councils may also grant the remaining 20% as discretionary relief, bringing your total bill close to zero.
6. Use the Property for Mixed or Home-Based Use
If part of your commercial property is also your home, you may only need to pay business rates for the business portion, reducing your overall liability. This applies to businesses like:
- Bed & breakfasts
- Artists’ studios
- Home offices with separate access
7. Consolidate or Share Office Space
By downsizing or co-working with another business, you can:
- Reduce your rateable value
- Share the rates bill
- Potentially qualify for relief due to smaller property usage
8. Apply for Hardship Relief
If your business is struggling financially and closing would negatively impact the community, your local council may offer hardship relief on a discretionary basis. You’ll need to prove:
- Financial hardship
- Benefit to the local area
9. Request Transitional Relief
If your rates increased significantly due to revaluation, you may be eligible for transitional relief, which limits how much your bill can rise each year. This is automatically applied if you qualify.
10. Consult a Business Rates Expert
Specialist surveyors or consultants can:
- Assess your eligibility for reliefs
- Handle appeals professionally
- Negotiate better valuations
Though they charge a fee, the savings often outweigh the costs—especially for larger properties.
Frequently Asked Questions
1. Can I reduce my business rates if I work from home?
If your home is primarily residential and the business use is minimal, you may not need to pay business rates at all.
2. How often can I challenge my business rates?
You can challenge when you believe the rateable value is wrong or your property has changed. Revaluation usually occurs every 3 years.
3. Is there a business rates holiday in 2025?
There are no blanket business rates holidays in 2025, but sector-specific relief may be available. Check with your local authority.
4. What’s the difference between rateable value and business rates?
Rateable value is the estimated rental value of your property; business rates are calculated as a percentage of that value.
5. Are small businesses exempt from all rates?
Not automatically, but many qualify for full or partial relief under SBRR, especially if occupying one small property.
6. Can I get relief if my business is seasonal?
Possibly. Some councils offer discretionary relief for seasonal businesses affected by periods of closure.
Conclusion
Reducing your business rates in 2025 is possible through smart planning, proactive applications, and expert support. Whether you’re a small shop owner or a growing startup, taking advantage of reliefs, reassessing your property value, and seeking professional advice can lead to significant savings. Stay informed and act early to keep your overheads under control.